Lebanon's state utility cuts power to public institutions over unpaid bills

Overview

Updated 1 hour ago

On Monday, Lebanon's state electricity company began cutting power to about 100 public institutions that owe roughly $248 million. The list includes the finance and interior ministries, Beirut's municipality and water authorities.

The state grid already delivers only two to four hours a day in Beirut, down from about 21 before 2019. The cutoff is the sharpest move yet in a standoff between Energy Minister Joe Saddi and Prime Minister Nawaf Salam's government over who pays for fuel and reform.

Why it matters

Lebanon's grid runs two to four hours a day. A $248 million arrears fight shows why the state utility cannot afford fuel.

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Key Indicators

$248M

Unpaid bills owed by public institutions

The total arrears on EDL's list of roughly 100 public bodies.

~100

Public institutions on the cutoff list

Ministries, municipalities, hospitals and water authorities named in the campaign.

2-4 hours

Daily state electricity in Beirut

Down from about 21 hours a day before the 2019 crisis.

17.5%

Projected year-on-year inflation

World Bank projection for Lebanon in 2026.

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Joe Saddi

Lebanon's Minister of Energy and Water

Boycotting cabinet meetings; facing speculation of resignation

Nawaf Salam

Prime Minister of Lebanon

Under pressure over the electricity standoff

Jessica Obeid

Lebanese energy expert

Analyst commenting on the crisis

Sami Zoughaib

Economist and research manager at The Policy Initiative

Analyst commenting on the crisis

Gebran Bassil

Leader of the Free Patriotic Movement; former energy minister

Critic of Saddi's management of the ministry

Organizations Involved

Électricité du Liban (EDL)

State-owned utility

Executing the cutoff campaign

Lebanon's state-owned electricity company, which generates, transmits and distributes power.

Ministry of Energy and Water

Government ministry

Pushing collection and sector reform under Saddi

The Lebanese ministry responsible for the country's energy and water sectors.

Lebanese Forces

Political party

Saddi's party; ministers boycotting cabinet

A right-wing Christian party that holds the energy ministry and is pressing the government over electricity.

Free Patriotic Movement

Political party

Critic of Saddi's management

A Christian party and rival of the Lebanese Forces that previously held the energy ministry.

The Policy Initiative

Think tank

Providing analysis on the crisis

A Beirut-based think tank whose researchers analyze Lebanon's economy and policy.

Timeline

2019 November 2026

8 events Latest: Yesterday

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November 2026
EDL cuts power to public institutions
Latest Utility

EDL begins disconnecting about 100 public bodies that owe roughly $248 million.
Yesterday
Some institutions pay and get reconnected
Utility

Several bodies make partial payments and promise installments; EDL restores their power.
Yesterday
October 2026
Lebanese Forces ministers join boycott
Politics

Three ministerial colleagues from the Lebanese Forces join Saddi's cabinet boycott.
5 days ago
Draft 2027 budget draws electricity objections
Politics

The Lebanese Forces and Saddi say the budget gives electricity too little attention.
October 2026
Saddi begins cabinet boycott
Politics

Saddi boycotts cabinet meetings over the government's handling of the power sector.
October 2026
EDL issues five-day ultimatum
Utility

EDL gives public bodies five days to pay arrears, exempting public hospitals.
October 2026
2025
Reformist-led government takes office
Politics

A government led by reformists takes control, raising hopes for the power sector.
2025
2019
Lebanon's economic crisis begins
Economic

A banking and currency crisis starts; state electricity supply begins a long decline.
2019

Scenarios

Institutions settle bills and EDL restores power

Likely Resolves by End of 2026

Discussed by: EDL's board statement; L'Orient-Le Jour

EDL said a large number of public bodies contacted it, paid part of what they owed and pledged monthly installments. It restored power to those that did. If the rest follow, the collection campaign winds down without a wider confrontation between the utility and the government.

Cabinet reshuffle removes Saddi

Possible Resolves by Q1 2027

Discussed by: Al Jazeera; Lebanese media speculation

Saddi's boycott and the Lebanese Forces' pressure have raised speculation about a reshuffle or his resignation. A new energy minister could reset the standoff, though the underlying fuel and debt problems would remain.

Qatar energy deal is signed

Possible Resolves by Q2 2027

Discussed by: Reuters; Al Jazeera

After its prime minister visited Beirut, Qatar offered to build two power plants over three years and a 20-year liquefied natural gas supply deal. Approval would add generation, but analysts say the damaged grid still needs rehabilitation and reform.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2019-2021

Lebanon's Economic Collapse (2019)

A banking and currency crisis wiped out savings and crippled the state's ability to buy fuel. In Beirut, state electricity fell from about 21 hours a day to two to four.

Then

Private diesel generators became the main power source, run by parties and businessmen.

Now

The state utility never recovered its finances, and reform efforts stalled.

Why this matters now

Today's cutoff is the latest attempt to make public institutions pay into a system that still cannot fund itself.

August 2021